Twitter is named the fifth high paying company. A well-structured and efficient labor market is highly competitive. In tech markets, the software engineers are paid many lumps sum amount because they are scarce and therefore should be kept motivated hence gaining a competitive advantage (Chatterjee, 2017). Its working environment should be safe and friendly. Thus, Twitter has maintained an active and expensive work environment as it is situated in San Francisco, California.
I think the level of pay has contributed to the success of Twitter since the top executives have been increased their level of e xpertise and invented software tools that offer a high level of individual user control that has increased its popularity among users and non-users. Moreover, they have come up with simple, user-friendly controls. Besides, since most of the company's stock is given to the employees as a form of compensation, the top executives become highly competitive and increase the efficiency and easiness at which the company operates (Reh, Tröster & Van Quaquebeke, 2018), therefore, accruing massive profits in turn not increase in stock hence, Twitter's success.
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I would recommend the company to reward the employees to their level of expertise and their contribution to the success of Twitter. It will promote an individual's effort to it increasing stock and accrual of profits to the company (Noe, Hollenbeck, Gerhart & Wright, 2017). The top executives should also be compensated, consequently as a way of motivation to retain them and avoid poaching by other rival companies. However, the company should reduce extremely high salaries since they attract more taxes such as the Payroll tax that is imposed on all companies over $250,000 and is calculated to 1.5% of a company's payroll expense (Henderson, 2017).
Furthermore, twitter should employ executives that have diverse skills, therefore, reducing the number of executives and hence a cut in the highly paid employees as a result of cutting costs on the running of the company (Wood, 2016).
References
Chatterjee, J. (2017). Strategy, human capital investments, business ‐ domain capabilities, and performance: a study in the global software services industry. Strategic Management Journal , 38 (3), 588-608.
Henderson, F. (2017). Software engineering at Google. arXiv preprint arXiv:1702.01715 .
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource management: Gaining a competitive advantage . New York, NY: McGraw-Hill Education.
Reh, S., Tröster, C., & Van Quaquebeke, N. (2018). Keeping (future) rivals down: Temporal social comparison predicts coworker social undermining via future status threat and envy. Journal of Applied Psychology , 103 (4), 399.
Wood, S. (2016). High-involvement management. In Encyclopedia of Human Resource Management . Edward Elgar Publishing Limited.
